A chart for your thoughts…What should we make of the flattening global yield curve?
Long-term interest rates are low and falling across industrialized bond markets. This is causing yield curves to flatten nearly everywhere. Some investors worry this is signaling a slowdown in global GDP growth. We do not share these concerns, at least in the US. However, this does not mean the Fed should ignore what worldwide investors are discounting, especially as it relates to expectations of persistently low inflation.